Delhi District Court
Cs No. 1056/16 M/S Affy Group Of ... vs . M/S Aaltramed Health Care Ltd. Page No. ... on 6 June, 2022
IN THE COURT OF ADDITIONAL DISTRICT JUDGE- 03
EAST DISTRICT, KARKARDOOMA COURTS: DELHI.
Pre s i d e d by : SH. RAJESH KUMAR.
Civil Suit No. 10 5 6 / 1 6
M/s Affy Grou p of Com p a n i e s ,
N-101, Anupa m Apartm e n t ,
East Arjun Nagar,
New Delhi- 1100 3 2
....... . . . . . . . . . . . . . . . . . P l a i n t i f f
Ver s u s
(1) M/s Aaltra m e d Healt h Care Ltd.
Flat No.101, Plot No. 191 A,
Opp. JNTU, Weste r n Hills,
Praga t hi Nagar Road,
Kukatp ally,
Hyder a b a d- 5000 8 5
Andhra Prade s h , ........ . . . D e f e n d a n t no. 1
G Prab h a k a r Rao,
Director,
Flat No.101, Plot No. 191 A,
Opp. JNTU, Weste r n Hills,
Praga t hi Nagar Road,
Kukatp ally,
Hyder a b a d- 5000 8 5
Andhra Prade s h , ........ . . . D e f e n d a n t no. 2
T. G. Laks h m a n a n ,
Vice Preside n t,
Flat No.101, Plot No. 191 A,
Opp. JNTU, Weste r n Hills,
Praga t hi Nagar Road,
Kukatp ally,
Hyder a b a d- 5000 8 5
CS No. 1056/16 M/s Affy Group of Companies Vs. M/s Aaltramed Health Care Ltd. Page No. 1 of 10
Andhra Prade s h ........ . . . D e f e n d a n t no. 3
(Dro p p e d fro m array of parti e s
vid e ord e r dat e d 18 . 0 2 . 2 0 2 0 )
Ram Pra s a d ,
Presid e n t- Opera tion s,
Flat No.101, Plot No. 191 A,
Opp. JNTU, Weste r n Hills,
Praga t hi Nagar Road,
Kukatp ally,
Hyder a b a d- 5000 8 5
Andhra Prade s h .... . . . . . . . . D e f e n d a n t no. 4
(Drop p e d fro m array of parti e s
vid e ord e r dat e d 18 . 0 2 . 2 0 2 0 )
(As per am e n d e d m e m o of parti e s )
Date of Institution : 21.11. 2 0 1 5
Date of Reserving Order : 19.05. 2 0 2 2
Date of Judgm e n t : 06.06. 2 0 2 2
Suit for rec o v e r y of Rs. 3 9 , 9 7 , 3 6 3 / - (Rup e e s Thirty
Nin e Lakh s S e v e n Thou s a n d Thre e Hundr e d and Sixt y
Thre e only ) on be h a l f of plain t iff
CASE OF THE PLAINTIFF
1. Brief facts of the cas e are that the plaintiff has
filed the pres e n t suit for recov ery for a sum of Rs.
39,97, 3 6 3 /- lakhs agains t the defen d a n t . The Affy Group of
Comp a ni e s ( herein aft e r referre d as the plaintiff) consist s of
Affy Phar m a Pvt. Ltd. which is a com p a n y incorpor a t e d
und er the Comp a ni e s Act, 1956 and Affy Pare nt e r als a
partn e r s hip firm, both having its regist e r e d office at N-101
Anupa m Apart m e n t , East Arjun Nagar, New Delhi- 32. It is
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furth er sub mitt e d that plaintiff is involve d in ma n uf a c t u rin g,
mark e ting and trading of Specialty Phar m a c e u tic als having
approxi m a t e annu al turnov e r of over 20 million USD. It is
furth er sub mitt e d that plaintiff is known in India and
Intern a tion ally for man uf a c t u ring all kinds of tablet s, soft
gels, oral liquids, dry syrup, caps ule s , injections, oint m e n t s
etc and has beco m e one of the lead e r s in the trading
healthc a r e industry and a quality phar m a trad e r of the
country with a global vision. It is furth er sub mitt e d that
defe n d a n t no. 1 M/s Aaltra m e d Heat h Care Ltd, is a
comp a n y regist e r e d unde r the Comp a ni e s Act, 1956 and
having its regist er e d office at Flat No. 101, Plot No. 191A,
Opp. JNTU, Weste r n Hils, Praga t hi Nagar Road, Kukatp ally,
Hyder a b a d - 5000 8 5 Andhra Prade s h, carrying on inter alia,
phar m a c e u ti c al busine s s and is dealing with the
phar m a c e u ti c al produc t s in India. Defend a n t no.2,
defe n d a n t n.3 and defe n d a n t no.4 are the Director, Vice
Presid e n t and the Preside n t- Opera tion s resp e c tiv ely in the
defe n d a n t no.1 Comp a n y.
2. It is also sub mitt e d that an agr e e m e n t was
ent e r e d into by both the parties on 28.03.2 0 1 2 which stat e d
that pay m e n t shall be mad e by the defe n d a n t s to the
plaintiff within 60 days of receipt of goods. It is furth er
sub mitt e d that on the expiration of the agr e e m e n t on
27.03. 2 0 1 4 , it was orally and mutu ally agr e e d by the partie s
that the pay m e n t will be mad e within a period of 60 days
from the raising of invoice s. It is furthe r sub mitt e d that
defe n d a n t s were dealing with the plaintiff since 2012 owing
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to its immin e n t reput a tio n and goodwill in high quality
produc t s . It is further sub mitt e d that initially ther e was a
smoot h relations hip betw e e n the plaintiff and defe n d a n t s ,
howev e r, after som e time, it bec a m e sour due to issue s of
non pay m e n t and the belat e d false allega tion s of defec t e d
produc t s by the defe n d a n t s . It is also sub mitt e d that
despit e repe a t e d allega tion s of defec t s and deficiency in the
plaintiff's goods by the defe n d a n t s , defe n d a n t s have
continu e d to take deliverie s from the plaintiff for further
man uf a c t ur e of goods. This suppor t s that fact that the
plaintiff's goods are of good quality and pass the requisite
test of quality ass ur a n c e . It is also sub mitt e d that the
alleg a tion s of defec t s are mer ely a tactic to avoid making
pay m e n t s for goods alrea dy receive d by the defe n d a n t s .
Relying upon the repre s e n t a ti o n s and ass ur a n c e s that the
defe n d a n t s ma d e , plaintiff supplied the phar m a c e u tic al
produc t s as per require m e n t on the promis e that pay m e n t
would be ma d e within 60 days time from receipt s of goods.
It is furth er sub mitt e d that defe n d a n t s again appro a c h e d
the plaintiff in the mont h of July, 2014 for supply of som e
phar m a c e u ti c al pre p a r a tion s wher ein the plaintiff in good
faith, diligently supplied the said produc t s agains t various
invoices. It is further sub mitt e d that the invoice s num b e r s
0014, 0630 and 2424 were not men tion e d in the legal
notice sent to the defe n d a n t s due to an inadv e r t e n t error.
The total unpaid balanc e out of thes e invoice s stan d s at
Rs.36,5 7, 3 7 9/- . It is furth er sub mitt e d that despit e repe a t e d
remind e r s of pending pay m e n t s , the plaintiff plea s have
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fallen on de af ears. The defe n d a n t has, in an arbitrary and
forceful man n e r withh eld the mon e y which was legitima t ely
due to plaintiff for the goods rightfully deliver e d by the
plaintiff, rec eive d by the defen d a n t s and sold furthe r by the
defe n d a n t s . Plaintiff requ e s t e d the defe n d a n t s to mak e
pay m e n t but on one pret e x t or the other the defen d a n t s
deferr e d the sa m e . It is furthe r sub mitt e d that C forms
agains t supplies are pending and have not be e n provide d by
the defe n d a n t s to the plaintiff. Plaintiff is under gover n m e n t
tax liability as the s e forms have to be duly sub mitt e d to the
tax dep ar t m e n t within stipulat e d time fram e given by govt
tax dep a r t m e n t s . The total invoice s value agains t C Forms
und er Affy Phar m a Pvt Ltd Rs.10,8 6, 5 4 2 and 5 % of which
amou n t to Rs.54,32 7/- . The total invoice value agains t C
Forms und er Affy Paren t e r al s is Rs.57,1 3, 1 4 8/- and 5 % of
which is Rs.2,85, 6 5 7 /- . The total amo u n t due to be paid by
the defe n d a n t s to the plaintiff sta n d s at Rs.36,5 7, 3 7 9/- plus
Rs.54,3 2 7 , plus Rs.2,85, 6 5 7 /- i.e. 39,97, 3 6 3 /- . It is furthe r
sub mitt e d that des pit e rep e a t e d thoug h belat e d alleg a tion s
of defect s and deficiency in the plaintiff's goods by the
defe n d a n t s , the defen d a n t s has continu e d to plac e orders
with the plaintiff for further ma n uf a c t u r e of goods. This
support s the fact tha t the plaintiff's produc t s are of good
quality and pass the requisite test of quality ass ur a n c e .
The belat e d and cooke d- up allega tion s of defec t s are a
mer e tactic to avoid making pay m e n t s for the goods alre a dy
receive d by the defen d a n t s . Plaintiff suffer e d hug e losse s
on accou n t of this failure on the part of the defe n d a n t s to
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mak e pay m e n t s for the goods receive d and is, ther efor e
entitle d to the afore s aid amo u n t as well as amou n t s toward s
intere s t, loss of profit, addition al follow on contr a c t,
opport u nity cost, overh e a d exp e n s e s , legal cost etc.
3. It is furth er sub mitt e d that plaintiff appro a c h e d
the defe n d a n t s to settle the balanc e pay m e n t s and also
agains t the 'C' form, the defen d a n t s ass ur e d com ple t e
remitt a n c e of the said amou n t within 60 days from receiving
the sale invoice s. Howev er, such period expire d on
07.12. 2 0 1 4 and the plaintiff has till dat e not receive d any
pay m e n t from the defe n d a n t s . It is furthe r sub mitt e d that
legal notice date d 05.06. 2 0 1 5 was sent by the plaintiff to
the defe n d a n t s . Howeve r, defe n d a n t s failed to mak e the
pay m e n t within the stipulat e d time. Henc e, the pres e n t suit.
4. Sum m o n s were issue d to the defe n d a n t s and the
defe n d a n t no. 1 & 2 were serve d. Howeve r, defe n d a n t s did
not app e a r before the court and defe n d a n t no.1 & 2 were
proc e e d e d ex- part e vide order dat e d 08.05. 2 0 1 7 . It is
pertine n t to me n tion that defe n d a n t no. 3 & 4 were dropp e d
from the array of partie s after recording the evide nc e of AR
Rajesh Kumar Mishar a and Ms. Vaishali Tanw ar, proxy
couns el for plaintiff vide order dat e d 18.02.2 0 2 0 pass e d by
the Ld. pred e c e s s o r . PE was close d after recording ex- part e
evide n c e vide order dat e d 08.04.2 0 2 2 .
EX- PARTE PLAINTIFF'S EVIDENCE.
5. Plaintiff exa min e d its AR Shri Rajahs Kumar
CS No. 1056/16 M/s Affy Group of Companies Vs. M/s Aaltramed Health Care Ltd. Page No. 6 of 10
Mishra as PW-1. He depo s e d in the affidavit reiter a ting the
plaint aver m e n t s and relied on:
1. Ex. PW1/1- board resolution held on 07.08. 2 0 1 5 .
2. Ex. PW1/2(OSR)- Copy of agre e m e n t betw e e n the
plaintiff and the defe n d a n t dat e d 28.03. 2 0 1 2 .
3. Ex. PW1/3 (colly)- comp u t e r gen e r a t e d invoices raise d
agains t orders place d by the defe n d a n t .
4. Ex. PW1/4- Comput e r gen er a t e d ledger w.e.f.
31.03. 2 0 1 4 to 20.03. 2 0 1 5 .
5. Ex. PW1/5- Comput e r gen e r a t e d the C-forms.
6. Ex. PW1/6 (OSR)- copy of regist e r e d partn e r s hip de e d
of Affy Pare nt e r als and Memor a n d u m and Article of
Association alongwith certificat e of incorpor a tion of
M/s Affy Phar m a Pvt. Ltd.
7. Ex. PW1/7- legal notice dat e d 05.06.2 0 1 5 .
8. Ex. PW1/8- original post al rec eipt and regist er e d AD.
9. Ex. PW1/9- courier receipt.
10. Ex. PW1/10- Certificat e u/s 65 B Evidenc e Act.
EX- PARTE FINAL ARGUMENTS
6. Heard the ld. Couns el for plaintiff and perus e d
the record. It has be e n argu e d on beh alf of the plaintiff that
defe n d a n t s have defra u d e d the plaintiff. Defend a n t s did not
paid the said amou n t and bre a c h e d the trust of plaintiff. It is
furth er sub mitt e d that defe n d a n t s did not pay the amo u n t
rem ains upon the defe n d a n t s . He furth er argu e d that a
decr e e for recov e ry of the suit amo u n t be pas s e d in favour
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of the plaintiff.
FINDINGS
7. PW-1 in his testim o n y had reiter a t e d the plaint
aver m e n t s and furth er sworn that an amo u n t of
Rs.39,9 7, 3 6 3/- rem ain s due and the sa m e amou n t is
recov e r a bl e . The said aver m e n t s went unre b u t t e d since
despit e service, the defe n d a n t s did not turn up to defe n d
the cas e and they were proce e d e d ex- part e.
8. Howev e r, the point that arise s for consid er a tion
is "wheth er the plaintiff is entitled for the recov er y of the
suit amo u n t from the defe n d a n t s" ?
9. To answ e r this point, the evide nc e is perus e d .
Plaintiff has prove d the following docu m e n t s i.e. Ex. PW1/1-
board resolution held on 07.08. 2 0 1 5 ; Ex. PW1/2(OSR)- Copy
of agre e m e n t betw e e n the plaintiff and the defe n d a n t dat e d
28.03. 2 0 1 2 ; Ex. PW1/3 (colly)- comp u t e r gen e r a t e d invoice s
raise d agains t orders plac e d by the defen d a n t ; Ex. PW1/4-
Compu t e r gen e r a t e d ledger w.e.f. 31.03.2 0 1 4 to
20.03. 2 0 1 5 ; Ex. PW1/5- Compu t e r gen e r a t e d the C-forms;
Ex. PW1/6 (OSR)- copy of regist er e d partn e r s hip dee d of
Affy Pare nt e r al s and Memora n d u m and Article of
Association alongwith certificat e of incorpor a tion of M/s Affy
Phar m a Pvt. Ltd; Ex. PW1/7- legal notice dat e d 05.06. 2 0 1 5 ;
Ex. PW1/8- original post al rec eipt and regist er e d AD; Ex.
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PW1/9- courier receipt; Ex. PW1/10- Certificat e u/s 65 B
Evidenc e Act which show that defe n d a n t s had take n the
goods from the plaintiff.
10. It is pertine n t to men tion that defen d a n t no. 3 &
4 were dropp e d from the array of partie s after recording the
evide n c e of AR Rajesh Kumar Mishar a and Ms. Vaishali
Tanw ar, proxy couns el for plaintiff vide order dat e d
18.02. 2 0 2 0 pass e d by the Ld. pred e c e s s o r . Henc e, no claim
agains t the defe n d a n t no. 3 & 4.
11. It is depo s e d by way of affidavit that the
defe n d a n t s exe c u t e d an agre e m e n t dat e d 28.03. 2 0 1 2 Ex.
PW1/2 betw e e n plaintiff and defe n d a n t s ther e b y defe n d a n t s
had und er t a k e n that they had to repay the amou n t of
goods within 60 days take n from the plaintiff. Furthe r, legal
notice PW1/8 shows that defe n d a n t s did not paid the
amou n t s to the plaintiff. The testi mo n y of PW-1 is
corrobor a t e d by Ex. PW1/2, agre e m e n t dat e d 28.03.2 0 1 2
exec u t e d by defen d a n t s in favour of plaintiff. Other
docu m e n t s also suppor t s the claim of plaintiff. The
testimo n y of PW-1 is also corrobor a t e d by the docu m e n t a r y
evide n c e and also the sa m e rem ain s unre b u t t e d . There is
no rea so n to disbeliev e the testim o n y of PW-1. Thus,
plaintiff is entitle d to an amo u n t of Rs. 39,97, 3 6 3 /- .
12. As far as intere s t is conc er n e d , 18 % is a bit
exce s siv e . More so, when nothing has be e n plac e d on
record to sugg e s t that the agr e e d rate of inter e s t was @ 18
% p.a. Keeping in mind the prev ailing rate of intere s t s and
natur e of trans a c tion, it would be prope r and rea s o n a bl e to
CS No. 1056/16 M/s Affy Group of Companies Vs. M/s Aaltramed Health Care Ltd. Page No. 9 of 10
grant inter e s t @ 6% p.a. in view of Section 34 CPC.
RELIEF
13. In view of abov e discus sion, plaintiff has be e n
able to prove his cas e. Hence, the following order:
ORDER :
The suit of the plaintiff is decr e e d with costs. The defe n d a n t s no. 1 & 2 are direct e d to pay the plaintiff a sum of Rs.39,9 7, 3 6 3/- (Rupe e s Thirty Nine Lakhs Seve n Thous a n d Thre e Hundr e d and Sixty Three only) along with intere s t at the rate of 6 % per annu m from the dat e of filing of the pres e n t suit till realization of the amou n t . Decre e she e t be draw n accordingly.
File be consign e d to Record Room.
Digitally signed by RAJESHRAJESH KUMAR Date: KUMAR 2022.06.06 09:14:31 +0100 Typed to the dictation directly, (Rajesh Kumar) corrected and pronounced in Additional District Judge-03, open court on 06.06.2022 EAST/KKD Courts, Delhi. CS No. 1056/16 M/s Affy Group of Companies Vs. M/s Aaltramed Health Care Ltd. Page No. 10 of 10